Russian oil tankers stuck near China as Indian demand drops, Bloomberg
Illustrative photo: Five tankers carrying Russian Urals crude oil were spotted off the Chinese coast (Getty Images)
A fleet of tankers loaded with Russian Urals crude oil has gathered off China's eastern coast after a reduction in purchases by India due to Western sanctions, Bloomberg reports.
According to Kpler data, at least five vessels carrying 3.4 million barrels of Russian oil were idling in the Yellow Sea on Wednesday, December 17. This is double the volume from last week and the highest level in over five years.
The area where tankers are located is near Shandong province, a hub for independent refineries.
Analysts note that the pile-up of Urals crude near Chinese shores is unusual, attracting global attention from oil traders. Chinese refineries typically do not purchase this grade, preferring Russian crude from eastern terminals due to proximity and high diesel quality.
Tighter US oversight of Russian oil shipments to India, along with sanctions on Rosneft and Lukoil, has forced Urals sellers to seek alternative buyers in East Asia.
In October, the US imposed sanctions on Russian oil giants Rosneft and Lukoil and 36 of their subsidiaries in an effort to pressure Moscow into negotiations over Ukraine. Following the sanctions, both companies' market value dropped sharply, and they were forced to begin selling overseas assets.
Additionally, China's largest state-owned refineries halted purchases of ESPO crude after the US sanctions, with India taking a similar stance.
Media estimates suggest that around 48 million barrels of Russian oil could remain stranded at sea due to US restrictions, forcing dozens of tankers to seek alternative unloading ports.
